Research On Competitive Strategy Of Internet Finance Business Of PAQD Company

With the application of big data,cloud computing and other new technologies in recent years,the Internet and mobile Internet have become an emerging channel for insurance institutions to sell and provide services.For reasons such as changes in administration policy,slowdown of economic growth,the traditional financial institutions,especially life-insurance companies,are dealing with problems like product homogeneity,high customer acquisition cost,low profit rate and conversion rate.On the other hand,Internet technology are being vastly established into financial industry.The accelerating iteration of Fintech is making continuous impact to the traditional financial business mode.In such circumstances,it’s critical for the traditional financial institutions to realize the practical significance of deep combination with Internet technology,to lower down business cost,open up new business channel and increase the benefits,by evolving and performing of Internetbased financial strategy.PAQD is a traditional life-insurance company established for almost thirty years.As a first-class subsidiary of a large financial group leading traditional financial institutions in China,which is the leading traditional financial institution in the domestic market,PAQD started the arrangement on Fintech in 2012 and became one of the top investors in Fintech among this industry.But it still has to face problems such as insufficient combination of on-line off-line business.Taking PAQD as the research subject,this article mainly use case analysis and comparative analysis,with PEST Macro-environment Analysis,Michael Porter’s Five Forces Model and SWOT strength and weakness analysis,to analyze the environment of PAQD,to decide the differentiation strategy as the main strategy on account of Quantitative Strategic Planning Matrix,and to compose the solution to perform the strategy and to guarantee the organization,human resource,system,technology and culture of the company according to the actual circumstances of traditional lifeinsurance business.In the hope of providing basis for PAQD to make feasible competitive strategic decision,and providing an incentive example for other traditional life-insurance companies to promote Internet-based financial strategy.